Internet Service Providers in Australia Industry Market Research Report Now Updated by IBISWorld

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IBISWorld Market Research

The NBN continues to shape the future of the industry.

Melbourne, Australia (PRWEB) September 28, 2013

Whether they own the telecommunications infrastructure or not, companies in the industry provide retail internet services. Revenue is derived from the provision of internet services to consumers, business and government. In 2013-14, the Internet Service Providers industry is estimated to generate $5.8 billion in revenue. Internet service providers (ISPs) have historically been one of the fastest growing industries in the technology sector. In the past five years, broadband's market share is forecast to have jumped to 96% of fixed subscribers. However, IBISWorld industry analyst Kosta Lev states “market saturation for fixed broadband has led revenue to flatten over the period.” Revenue is beginning to pick up pace again as new technology gets upgraded. Over the five years though 2013-14, annualised growth is expected to be 1.8%.

The industry has undergone significant consolidation over the past five years. The importance of scale and exposure have meant that operators have become much larger. Smaller players have either been forced to exit the industry or make acquisitions to keep pace with the top players as they slash prices to maintain market share. Over the next five years, the industry will primarily be characterised by the development of the National Broadband Network (NBN) project. As access providers, ISPs are likely to grow strongly over the next five years as subscribers choose to upgrade connections, particularly as internet use continues to increase.

The Internet Service Providers industry is characterised as having a high level of market share concentration. The industry’s major players are Telstra, iiNet, SingTel Optus and TPG Telecom. According to Lev, “the industry is extremely capital intensive, and as such, there has historically been little threat of any company creating a network to rival Telstra's copper PSTN network.” Telstra has been able to leverage its dominance of the wired telecommunications market by bundling services. The high-fixed cost nature of the industry has encouraged a spate of merger and acquisition activity within the smaller ISPs, as they strive to attain economies of scale that will enable them to compete with Telstra. TPG Telecom and iiNet have shown the largest growth in industry market share as a result. Further consolidation is expected in the next five years, which will push the industry's concentration higher. However, the Australian Government's NBN plan is designed to increase competition within the entire Australian communications sector. For more information, visit IBISWorld’s Internet Service Providers report in Australia industry page.

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IBISWorld industry Report Key Topics

Companies in this industry provide internet access via fixed lines to businesses, households and government. Internet services are provided via dial-up, integrated services digital network (ISDN) and fixed broadband connections. This industry also provides internet reliant telecommunication services such as voice over internet protocol (VoIP).

Industry Performance
Executive Summary
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Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
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About IBISWorld Inc.

Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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